May 27, 2008

Det. No. 07-0206, 27 WTD 36 (2008) An advanced registered nursing practitioner (ARNP) protests the assessment of retail sales tax on sales of dietary supplements prescribed and dispensed by her to patients. We hold that dietary supplements prescribed and dispensed by her prior to January 1, 2004 were subject to tax because they were not dispensed by a licensed dispensary. We hold that sales of dietary supplements prescribed and dispensed by her after January 1, 2004 were exempt from retail sales tax under a new exemption that did not require them to be dispensed by a licensed pharmacist.

Det. No. 07-0247, 27 WTD 41 (2008) A foreign corporation providing telephone equipment to its customers/lessees protests the assessment of retail sales tax and retailing B&O tax by the Audit Division of the Department of Revenue because the Audit Division determined that the taxpayer provided its clients the equipment through financing leases rather than through true leases (also known as operating leases). We hold that the disputed leases are true leases and grant the petition.